Unit of competency Outline
Date retreived
22/07/2026 4:21 AM AWST
22/07/2026 4:21 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage risk
Manage risk
Unit of competency
National Code
PSPMNGT608B
PSPMNGT608B
State Code
C7983
C7983
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
08/07/2014
Field of Education
080399 - Business And Management, N.e.c.
Original Release Date
08/07/2014
Nominal Hours
40
Description
This unit covers maximising results and minimising consequences for a business unit activity by managing risk. It includes establishing the risk management context, planning for risk management, managing risk and evaluating the risk management plan.In practice, managing risk may overlap with other generalist or specialist public sector work activities such as acting ethically, complying with legislation, applying government systems, managing resources, managing change, managing diversity, formulating business strategies, etc.The unit is one of 4 in the Working in Government and Management Competency fields dealing with risk. Related units are:PSPGOV417A Identify and treat risksPSPGOV517A Coordinate risk managementPSPMNGT704A Undertake enterprise risk managementThis unit replaces and is equivalent to PSPMNGT608A Manage risk.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication
Notes
Elements and Performance Criteria
1. Establish the risk management context
- 1.1 The nature and extent of business unit activity, its objectives and outcomes are established within the organisational context.
- 1.2 The strategic and risk management context are identified in accordance with organisational requirements.
- 1.3 Stakeholders are identified and consulted to ensure their views, concerns and needs are taken into account in the risk management process.
- 1.4 Criteria for risk assessment are determined in accordance with legislation, policy and procedures.
- 1.5 Risk management criteria are determined to provide guidance on balancing risk, costs, benefits and opportunities.
- 1.6 Risk management criteria are monitored, reviewed and adjusted to ensure opportunities and current and emerging trends are reflected.
2. Plan for risk management
- 2.1 Sources of risk are investigated and potential, perceived and actual risks are identified and consulted upon to ensure full coverage.
- 2.2 Risks are analysed and documented in consultation with stakeholders, and levels of risk are determined as the basis for risk management planning in a specific activity.
- 2.3 Risk management methods/techniques/tools are selected and modified as necessary to evaluate risks to determine those that are acceptable and those that are unacceptable.
- 2.4 Risk treatment options are identified for unacceptable risks and preferred risk treatment approaches are determined.
- 2.5 A risk managementplan is developed and communicated to key stakeholders to ensure clarity and achievement of objectives throughout the activity's life cycle.
3. Manage risk
- 3.1 Activity is managed in accordance with agreed risk management plan.
- 3.2 Performance is reviewed, variance is analysed and risk responses are initiated to achieve objectives with minimal disruption and conflict.
- 3.3 Internal and external risks to outcomes are monitored and remedial actions are initiated to achieve business unit objectives.
4. Evaluate the risk management plan
- 4.1 A valid and reliable evaluation methodology is developed and implemented.
- 4.2 Outcomes are reviewed and analysed to assess the effectiveness of current risk management strategies.
- 4.3 Evaluation is used to monitor existing risks, identify new risks and identify any trouble spots.
- 4.4 A variety of information, including the perspectives of key stakeholders, is obtained and utilised.
- 4.5 Recommendations on enhancements to the plan are formulated and acted upon to inform subsequent risk management processes.
- 4.6 The outcomes of evaluation are communicated to relevant personnel.
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in bold italics in the Performance Criteria is explained here.
Business unit may refer to:
a program
sub-program
cost centre
area
division
branch
production unit or section located within the organisation
Organisational context may include:
the organisation, how it is organised, and its capabilities
any official resources, including physical areas and assets, that are vital to the operation of the organisation
key operational elements and services of the organisation
any major projects
Strategic and risk management context may include:
the relationship between the organisation and the environment in which it operates
the organisation's functions:
political
operational
financial
social
legal
commercial
the various stakeholders and clients
Stakeholders may include:
employees
managers
volunteers
unions
financial managers
self-insurers
clients
suppliers
contractors
service providers
community organisations
the public
Risk management:
is a logical and systematic process of identifying, analysing, evaluating, treating, and monitoring risks related to any strategy plan, process, program or procedure that will enable the organisation to minimise losses and maximise opportunities
may be considered in relation to an organisation's:
people
assets and physical environment
reputation and image
legal issues
business continuity
finances
may include written procedures to ensure staff know:
what
how
when, and
by whom, action is to be taken to treat risks in the organisation
Risk evaluation criteria are:
used to rank risks and decide whether they are acceptable or not
affected by:
legal requirements
perceptions of internal/external stakeholders
cost-benefit analysis, for example, cost of risk management being less than financial cost if the risk occurred
Legislation, policy and procedures may include:
Commonwealth and State/Territory legislation relating to risk management
national and international codes of practice and standards, such as SIRCA 8001:2003
the organisation's risk management policies and practices
codes of conduct/codes of ethics
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised
professional standards for risk management, for example CPRM - certified practising risk manager
jurisdictional policies, guidelines and web sites, for example www.riskmanagement.qld.gov.au
Sources of risk may include:
human behaviour
technology/technical issues
occupational health and safety
legal
political
property/equipment
environmental
financial/market
natural events
Risks may be:
internal
external
random
real
perceived
Risks may include:
physical injury or death
failure of machinery or equipment
breaches of security
fraud
litigation
client dissatisfaction
unfavourable publicity
Analysis of risks includes:
likelihood of risks:
almost certain
likely
possible
unlikely
rare
consequences of risks:
insignificant
minor
moderate
major
catastrophic
current control measures
Documentation of analysis may include:
table showing all risks, any existing controls, likelihood of occurring, consequences and subsequent level of risk
Level of risk may be:
low, treated with routine procedures
moderate, with specific responsibility allocated for the risk, and monitoring and response procedures implemented
high, requiring action, as it has potential to be damaging to the organisation
extreme, requiring immediate action, as the potential could be devastating to the organisation
Methods/techniques/ tools may include:
computer modelling
sensitivity analysis
structured interviews
statistical data
questionnaires
fault trees
analysis of consequences - loss of money, time, labour, intangibles
Acceptable risks are:
those which an organisation has determined have the least potential for harm
not necessarily insignificant
Risks may be acceptable because:
the risk level is so low that it does not warrant spending time and money to treat it
the risk is low and the benefits outweigh the cost of treating it
the opportunities presented are much greater than the threat
Unacceptable risks are:
those which an organisation has determined have the most potential for harm
Options for treating risks may include:
avoiding the risk, for example, by terminating the activity or conducting it in another way (these actions may have different risks attached)
controlling the risk, by reducing the likelihood of the risk occurring, the consequences of the risk, or both
transferring the risk, for example, by arranging insurance, contracting some or all of the activity to another organisation or person, etc
retaining the risk, and making contingency plans/funds allocation for covering any loss or other negative effect from the risk
Risk management plan may include:
sources of risk and risk events
analysis of risks - likelihood, consequences and risk levels
prioritised list of unacceptable risks
treatment options selected
person/s responsible for implementing treatment options
resources required
performance measures
timeframe for implementation
timetable for review of plan
Evaluation methodology may include:
observations
physical inspections
incident reports
questionnaires
interviews with stakeholders
regular reviews of risk treatment procedures
repeat of the risk management process
Business unit may refer to:
a program
sub-program
cost centre
area
division
branch
production unit or section located within the organisation
Organisational context may include:
the organisation, how it is organised, and its capabilities
any official resources, including physical areas and assets, that are vital to the operation of the organisation
key operational elements and services of the organisation
any major projects
Strategic and risk management context may include:
the relationship between the organisation and the environment in which it operates
the organisation's functions:
political
operational
financial
social
legal
commercial
the various stakeholders and clients
Stakeholders may include:
employees
managers
volunteers
unions
financial managers
self-insurers
clients
suppliers
contractors
service providers
community organisations
the public
Risk management:
is a logical and systematic process of identifying, analysing, evaluating, treating, and monitoring risks related to any strategy plan, process, program or procedure that will enable the organisation to minimise losses and maximise opportunities
may be considered in relation to an organisation's:
people
assets and physical environment
reputation and image
legal issues
business continuity
finances
may include written procedures to ensure staff know:
what
how
when, and
by whom, action is to be taken to treat risks in the organisation
Risk evaluation criteria are:
used to rank risks and decide whether they are acceptable or not
affected by:
legal requirements
perceptions of internal/external stakeholders
cost-benefit analysis, for example, cost of risk management being less than financial cost if the risk occurred
Legislation, policy and procedures may include:
Commonwealth and State/Territory legislation relating to risk management
national and international codes of practice and standards, such as SIRCA 8001:2003
the organisation's risk management policies and practices
codes of conduct/codes of ethics
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised
professional standards for risk management, for example CPRM - certified practising risk manager
jurisdictional policies, guidelines and web sites, for example www.riskmanagement.qld.gov.au
Sources of risk may include:
human behaviour
technology/technical issues
occupational health and safety
legal
political
property/equipment
environmental
financial/market
natural events
Risks may be:
internal
external
random
real
perceived
Risks may include:
physical injury or death
failure of machinery or equipment
breaches of security
fraud
litigation
client dissatisfaction
unfavourable publicity
Analysis of risks includes:
likelihood of risks:
almost certain
likely
possible
unlikely
rare
consequences of risks:
insignificant
minor
moderate
major
catastrophic
current control measures
Documentation of analysis may include:
table showing all risks, any existing controls, likelihood of occurring, consequences and subsequent level of risk
Level of risk may be:
low, treated with routine procedures
moderate, with specific responsibility allocated for the risk, and monitoring and response procedures implemented
high, requiring action, as it has potential to be damaging to the organisation
extreme, requiring immediate action, as the potential could be devastating to the organisation
Methods/techniques/ tools may include:
computer modelling
sensitivity analysis
structured interviews
statistical data
questionnaires
fault trees
analysis of consequences - loss of money, time, labour, intangibles
Acceptable risks are:
those which an organisation has determined have the least potential for harm
not necessarily insignificant
Risks may be acceptable because:
the risk level is so low that it does not warrant spending time and money to treat it
the risk is low and the benefits outweigh the cost of treating it
the opportunities presented are much greater than the threat
Unacceptable risks are:
those which an organisation has determined have the most potential for harm
Options for treating risks may include:
avoiding the risk, for example, by terminating the activity or conducting it in another way (these actions may have different risks attached)
controlling the risk, by reducing the likelihood of the risk occurring, the consequences of the risk, or both
transferring the risk, for example, by arranging insurance, contracting some or all of the activity to another organisation or person, etc
retaining the risk, and making contingency plans/funds allocation for covering any loss or other negative effect from the risk
Risk management plan may include:
sources of risk and risk events
analysis of risks - likelihood, consequences and risk levels
prioritised list of unacceptable risks
treatment options selected
person/s responsible for implementing treatment options
resources required
performance measures
timeframe for implementation
timetable for review of plan
Evaluation methodology may include:
observations
physical inspections
incident reports
questionnaires
interviews with stakeholders
regular reviews of risk treatment procedures
repeat of the risk management process
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.
Units to be assessed together
Pre-requisite units that must be achieved prior to this unit:Nil
Co-requisite units that must be assessed with this unit:Nil
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:
PSPETHC601B Maintain and enhance confidence in public service
PSPGOV601B Apply government systems
PSPGOV602B Establish and maintain strategic networks
PSPLEGN601B Manage compliance with legislation in the public sector
PSPMNGT602B Manage resources
PSPMNGT604B Manage change
PSPMNGT605B Manage diversity
PSPMNGT609B Formulate business strategies
PSPMNGT611A Manage evaluations
PSPMNGT612A Review and improve business performance
PSPMNGT613A Develop partnering arrangements
PSPMNGT614A Facilitate knowledge management
PSPPOL603A Manage policy implementation
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
the knowledge requirements of this unit
the skill requirements of this unit
application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
management of risk in a range of (2 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to risk management
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised
other national and international standards relating to risk management such as SIRCA 8001:2003
case studies and workplace scenarios to capture the range of risk management situations likely to be encountered
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when managing risk, including coping with difficulties, irregularities and breakdowns in routine
management of risk in a range of (2 or more) contexts (or occasions, over time)
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular target groups, such as:
people with disabilities
people from culturally and linguistically diverse backgrounds
Aboriginal and Torres Strait Islander people
women
young people
older people
people in rural and remote locations
Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:
case studies
portfolios
projects
questioning
scenarios
authenticated evidence from the workplace and/or training courses
For consistency of assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments
Units to be assessed together
Pre-requisite units that must be achieved prior to this unit:Nil
Co-requisite units that must be assessed with this unit:Nil
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:
PSPETHC601B Maintain and enhance confidence in public service
PSPGOV601B Apply government systems
PSPGOV602B Establish and maintain strategic networks
PSPLEGN601B Manage compliance with legislation in the public sector
PSPMNGT602B Manage resources
PSPMNGT604B Manage change
PSPMNGT605B Manage diversity
PSPMNGT609B Formulate business strategies
PSPMNGT611A Manage evaluations
PSPMNGT612A Review and improve business performance
PSPMNGT613A Develop partnering arrangements
PSPMNGT614A Facilitate knowledge management
PSPPOL603A Manage policy implementation
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
the knowledge requirements of this unit
the skill requirements of this unit
application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
management of risk in a range of (2 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to risk management
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised
other national and international standards relating to risk management such as SIRCA 8001:2003
case studies and workplace scenarios to capture the range of risk management situations likely to be encountered
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when managing risk, including coping with difficulties, irregularities and breakdowns in routine
management of risk in a range of (2 or more) contexts (or occasions, over time)
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular target groups, such as:
people with disabilities
people from culturally and linguistically diverse backgrounds
Aboriginal and Torres Strait Islander people
women
young people
older people
people in rural and remote locations
Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:
case studies
portfolios
projects
questioning
scenarios
authenticated evidence from the workplace and/or training courses
For consistency of assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C3447 | PSPMNGT608A | Manage risk | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AWU55 | PSPMGT007 | Manage risk | Unit of competency |